2023-10-01 11:13:43
Last update: 01.10.2023 | 12:13
Related topics:
The Supreme Court of the State of New York ruled last night (Saturday) that the food apps will be required to pay their couriers a minimum wage of $17.96 per hour (about NIS 68).
The court’s ruling comes after the three largest food delivery platforms in the city, Uber Technologies, DoorDash and Grubhub, appealed the decision of the mayor of New York, Eric Adams, last July, which was supposed to take effect on the 12th of the month. The court froze the decision, and now, as mentioned, rejected the companies’ appeal.
According to Adams’ statement, the wage is expected to rise to $19.96 per hour before tips (NIS 71.69) by April 1, 2025. The new minimum wage will apply to all city couriers, regardless of their employment status.
The new rules, which will go into effect in a month, will give companies two payment options for couriers: by the hour or by delivery. Companies that choose the hourly route will have to pay couriers $17.96 for every hour a courier is connected to the platform, including waiting time for delivery offers and travel time. Those who pay by delivery will be charged a fee from the moment the delivery offer is received until the moment the courier drops off the delivery at least 50 cents per minute, not including tips.
According to estimates, about 60,000 food app messengers are currently working in New York City, the vast majority of them are classified as “independent” within the platform economy (similar to Volt messengers in Israel), and they are not entitled to rights such as minimum wage or social rights associated with employment. At the same time, they also do not get the full freedom that an independent trader has, such as setting a rate, creating a customer bank, hiring employees and more.
With the court’s approval, New York becomes the first major city in the US to maintain a blanket minimum wage for couriers.
Talk today every morning with your email
#court #York #minimum #wage #couriers #food #platforms #dollars #hour